What are government bonds saying?
Yield curve shape and yield curve change are often good predictors of the state of the economy and its outlook.
Insights Topic
Macroeconomics
Managing the downturn
As 2021 wore on we became increasingly concerned that the disconnect between asset prices, economic fundamentals and monetary policy was becoming more acute.
Why central bank policy errors should be top of your 2022 worry list
With inflation soaring and the economic recovery looking more fragile, we look at three famous central bank policy errors to demonstrate why they can be so dangerous for investors, and consider how a fixed income portfolio can be strengthened against the risk.
What will turn this market around?
For fixed income investors, the start to 2022 has been trickier than any we have experienced for many years, but we think this difficulty is to be expected and aligns with our macro view.
Yields soften blow of Powell’s hard words
Powell’s hard line may have surprised investors, particularly in light of recent market volatility and increasing geopolitical risk in Eastern Europe, but the Fed’s fear of prolonged higher inflation looks to be trumping those concerns.
Investment Grade Quarterly Update – January 2022
TwentyFour Partner and Portfolio Manager, Gordon Shannon, discusses how the investment grade strategy has performed in Q4 2021 and provides his outlook for the new year.
Multi-Sector Bond Quarterly Update – January 2022
A member of the Multi-Sector Bond team discusses market conditions in Q4 2021 and provides her outlook for the new year.
Asset-Backed Securities Quarterly Update – January 2022
TwentyFour Partner and Portfolio Manager, Douglas Charleston, explains how ABS markets have performed in Q4 2021 and provides his outlook for the new year.
European ABS: Five things to expect in 2022
If 2021 was a bad year for global bond returns, it follows there were few natural shelters to be found within fixed income from the brunt of inflation and rates-driven volatility; the Barclays Global Aggregate Index (a widely used broad measure of bond performance) returned -4.7% in USD terms, while European investment grade credit returned -1.1% despite credit spreads tightening over the course of the year.
Three strategies for beating inflation with bonds
Inflation was the dominant theme across financial markets in 2021, and we think it is likely to be a big driver of returns again in 2022.
European ABS: Five things to expect in 2022
With inflation and rate hikes dominating market discourse, we expect floating rate assets such as ABS and CLOs to benefit from increasing demand in 2022.
Why so quiet at the Bank of England?
It has been a very interesting start to the year in the rates sector of the market.